- Delivers revenue and profit within guidance
- Maintains consistent full year outlook
- Strong momentum in iX Suite enterprise wins
| Three Months Ended | ||||||||||
| Change | ||||||||||
| Revenue($M) | $ | 2,500.4 | $ | 2,372.2 | 5.4 | % | ||||
| Operating income($M) | $ | 118.6 | $ | 168.9 | (29.8)% | |||||
| Non-GAAP operating income($M)(1) | $ | 295.0 | $ | 321.5 | (8.2)% | |||||
| Operating margin | 4.7 | % | 7.1 | % | -240 bps | |||||
| Non-GAAP operating margin(1) | 11.8 | % | 13.6 | % | -180 bps | |||||
| Net income($M) | $ | 21.6 | $ | 70.3 | (69.3)% | |||||
| Non-GAAP net income($M)(1) | $ | 168.2 | $ | 188.1 | (10.6)% | |||||
| Adjusted EBITDA($M)(1) | $ | 348.2 | $ | 374.2 | (6.9)% | |||||
| Adjusted EBITDA margin(1) | 13.9 | % | 15.8 | % | -190 bps | |||||
| Diluted earnings per common share | $ | 0.33 | $ | 1.04 | (68.3)% | |||||
| Non-GAAP diluted earnings per common share(1) | $ | 2.61 | $ | 2.79 | (6.5)% | |||||
(1) See non-GAAP reconciliations included in the accompanying financial tables for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.
First Quarter Fiscal 2026 Highlights:
- Revenue of
$2,500.4 million , an increase of 5.4% year-on-year on an as reported basis compared to revenue of$2,372.2 million in the prior year first quarter. The Company grew revenue 1.9% year-on-year on a constant currency basis. - Operating income of
$118.6 million , or 4.7% of revenue, compared to$168.9 million , or 7.1% of revenue, in the prior year first quarter. - Non-GAAP operating income of
$295.0 million , or 11.8% of revenue, compared with$321.5 million , or 13.6% of revenue in the prior year first quarter. - Adjusted EBITDA of
$348.2 million , or 13.9% of revenue, compared with$374.2 million , or 15.8% of revenue in the prior year first quarter. - Cash flow used in operations was
$83.2 million in the quarter. Adjusted free cash flow(1) was a use of$144.6 million in the quarter. - Diluted earnings per common share (“EPS”) was
$0.33 compared to$1.04 in the prior year first quarter. - Non-GAAP diluted EPS was
$2.61 compared to$2.79 in the prior year first quarter.
“We continue to help clients capture measurable value from AI by being a trusted partner for these solutions,” said
Quarterly Dividend and Share Repurchase Program:
- The Company paid a
$0.36 per share quarterly dividend onFebruary 10, 2026 . The Company’s Board of Directors has declared a quarterly dividend of$0.36 per share payable onMay 5, 2026 , to shareholders of record at the close of business onApril 24, 2026 . - The Company repurchased approximately 1 million shares in the first quarter of fiscal year 2026 at a cost of
$42.0 million under its share repurchase program at an average cost of$40.06 per share. AtFebruary 28, 2026 , the Company’s remaining share repurchase authorization was$396.6 million .
Business Outlook:
The following statements are based on the Company’s current expectations for the second quarter and the full year fiscal 2026. Non-GAAP financial measures exclude the impact of acquisition-related, integration and restructuring expenses, amortization of intangible assets, depreciation, loss on held for sale, share-based compensation and the related tax effects thereon. The non-GAAP EPS guidance assumes no impact from changes in acquisition contingent consideration and foreign currency losses (gains), net included in other expense (income), net. These statements are forward-looking and actual results may differ materially.
Second Quarter Fiscal 2026 Expectations:
- Second quarter reported revenue of
$2.460 billion to$2.485 billion . Based on current exchange rates, these expectations assume an approximate 75-basis point positive impact of foreign exchange rates compared with the prior year period. The guidance implies constant currency revenue growth for the quarter ranging from 1.0% to 2.0%. - Operating income of
$128 million to$138 million and non-GAAP operating income of$290 million to$300 million . - Non-GAAP diluted EPS of
$2.57 to$2.69 , assuming approximately 60.9 million diluted common shares outstanding and approximately 4.9% of net income attributable to participating securities. - The effective tax rate is expected to be approximately 25%.
Full Year 2026 Expectations:
- Full year reported revenue of
$10.035 billion to$10.180 billion . Based on current exchange rates, these expectations assume an approximate 60-basis point positive impact of foreign exchange rates compared with the prior year. The guidance implies constant currency revenue growth for the full year of 1.5% to 3.0%. - Operating income of
$636 million to$686 million and non-GAAP operating income of$1,240 million to$1,290 million . - Non-GAAP diluted EPS of
$11.48 to$12.07 , assuming approximately 60.6 million diluted common shares outstanding and approximately 4.9% of net income attributable to participating securities. - The effective tax rate is expected to be approximately 25%.
In addition, the Company expects to generate approximately
The Company believes that a quantitative reconciliation of the non-GAAP EPS outlook to the most directly comparable GAAP measure cannot be provided without unreasonable efforts due to (a) the inability to forecast future changes in acquisition contingent consideration, which is based, in part, on the future trading price of the Company’s common stock, and (b) the inability to forecast future foreign currency losses (gains), net included in other expense (income), net. For the same reason, the Company is unable to address the probable significance of the unavailable information, which may have a material impact on the Company’s GAAP results.
The Company believes that a quantitative reconciliation of the adjusted free cash flow outlook to the most directly comparable GAAP measure cannot be provided without unreasonable efforts due to uncertainty related to the future changes in the Company’s factoring program and related timing of those changes. For the same reason, the Company is unable to address the probable significance of the unavailable information, which may have a material impact on the Company’s GAAP results.
Conference Call and Webcast
The Company will host a conference call for investors to review its first quarter fiscal 2026 results today at
The live conference call webcast will be available in listen-only mode in the Investor Relations section of the Company’s website under “Events and Presentations” at https://ir.concentrix.com/events-and-presentations. A replay will also be available on the website following the conference call.
About us: Experience the power of
Use of Non-GAAP Information
In addition to disclosing financial results that are determined in accordance with GAAP, we also disclose certain non-GAAP financial information, including:
- Constant currency revenue growth, which is revenue growth adjusted for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance. Constant currency revenue growth is calculated by translating the revenue of each fiscal year in the billing currency to
U.S. dollars using the comparable prior year’s currency conversion rate in comparison to prior year’s revenue. Generally, when theU.S. dollar either strengthens or weakens against other currencies, revenue growth at constant currency rates or adjusting for currency will be higher or lower than revenue growth reported at actual exchange rates. - Non-GAAP operating income, which is operating income, adjusted to exclude acquisition-related, integration and restructuring expenses, step-up depreciation, amortization of intangible assets, loss on held for sale and share-based compensation.
- Non-GAAP operating margin, which is non-GAAP operating income, as defined above, divided by revenue.
- Adjusted earnings before interest, taxes, depreciation, and amortization, or adjusted EBITDA, which is non-GAAP operating income, as defined above, plus depreciation (exclusive of step-up depreciation).
- Adjusted EBITDA margin, which is adjusted EBITDA, as defined above, divided by revenue.
- Non-GAAP net income, which is net income excluding the tax-effected impact of acquisition-related, integration and restructuring expenses, step-up depreciation, amortization of intangible assets, loss on held for sale, share-based compensation, certain debt costs, imputed interest related to the sellers’ note, change in acquisition contingent consideration and foreign currency losses (gains), net. Non-GAAP net income also excludes the income tax effect of certain tax law changes.
- Free cash flow, which is cash flows from operating activities less capital expenditures, and adjusted free cash flow, which is free cash flow excluding the effect of changes in the outstanding factoring balance. We believe that free cash flow is a meaningful measure of cash flows since capital expenditures are a necessary component of ongoing operations. We believe that adjusted free cash flow is a meaningful measure of cash flows because it removes the effect of factoring which changes the timing of the receipt of cash for certain receivables. However, free cash flow and adjusted free cash flow have limitations because they do not represent the residual cash flow available for discretionary expenditures. For example, free cash flow and adjusted free cash flow do not incorporate payments for business acquisitions.
- Non-GAAP diluted EPS, which is diluted EPS excluding the per share, tax-effected impact of acquisition-related, integration and restructuring expenses, step-up depreciation, amortization of intangible assets, loss on held for sale, share-based compensation, certain debt costs, imputed interest related to the sellers’ note, change in acquisition contingent consideration and foreign currency losses (gains), net. Non-GAAP EPS also excludes the per share income tax effect of certain tax law changes. Non-GAAP EPS also reflects a per share adjustment to exclude non-GAAP net income attributable to participating securities.
We believe that providing this additional information is useful to the reader to better assess and understand our base operating performance, especially when comparing results with previous periods and for planning and forecasting in future periods, primarily because management typically monitors the business adjusted for these items in addition to GAAP results. Management also uses these non-GAAP measures to establish operational goals and, in some cases, for measuring performance for compensation purposes. These non-GAAP financial measures exclude amortization of intangible assets. Although intangible assets contribute to our revenue generation, the amortization of intangible assets does not directly relate to the services performed for our clients. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of our acquisition activity. Accordingly, we believe excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of our business nor reflect our underlying business performance, enhances our and our investors’ ability to compare our past financial performance with its current performance and to analyze underlying business performance and trends. These non-GAAP financial measures also exclude share-based compensation expense. Given the subjective assumptions and the variety of award types that companies can use when calculating share-based compensation expense, management believes this additional information allows investors to make additional comparisons between our operating results and those of our peers. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be used as a complement to, and in conjunction with, data presented in accordance with GAAP.
Safe Harbor Statement
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding the Company’s expected future financial condition, growth and profitability, results of operations, including revenue and operating income, cash flows, and effective tax rate, capital expenditures and anticipated investment costs, the Company’s stock price and market capitalization, the future growth and success of, and demand for, the Company’s services and products, the potential benefits associated with use of the Company’s generative artificial intelligence and other products, share repurchase and dividend activity, capital allocation, debt repayment and obligations, business strategy, product launches, foreign currency exchange rate fluctuations, and statements that include words such as believe, expect, intend, plan, may, will, anticipate, provide, could, should, target, estimate, outlook, and other similar expressions. These forward-looking statements are inherently uncertain and involve substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things: risks related to general economic and geopolitical conditions and their effects on our clients’ businesses and demand for our services, including consumer demand, interest rates, inflation, the price of oil and other petroleum-based products, international tariffs and global trade policies, supply chains, the conflicts in the
Copyright 2026 Concentrix Corporation. All rights reserved.
From Fortune ©2025 Fortune
Investor Contact:
Investor.relations@concentrix.com
CONSOLIDATED BALANCE SHEETS (currency and share amounts in thousands, except par value) | |||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 222,699 | $ | 327,347 | |||
| Accounts receivable, net | 2,038,296 | 1,999,021 | |||||
| Assets held for sale | 207,502 | — | |||||
| Other current assets | 572,718 | 758,135 | |||||
| Total current assets | 3,041,215 | 3,084,503 | |||||
| Property and equipment, net | 726,063 | 735,550 | |||||
| 3,696,052 | 3,671,746 | ||||||
| Intangible assets, net | 1,867,038 | 1,960,338 | |||||
| Deferred tax assets | 314,044 | 317,453 | |||||
| Other assets | 1,030,210 | 991,496 | |||||
| Total assets | $ | 10,674,622 | $ | 10,761,086 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 202,424 | $ | 244,771 | |||
| Current portion of long-term debt | 750,000 | 65,625 | |||||
| Accrued compensation and benefits | 622,039 | 764,962 | |||||
| Other accrued liabilities | 736,782 | 997,198 | |||||
| Income taxes payable | 89,147 | 123,794 | |||||
| Liabilities held for sale | 174,941 | — | |||||
| Total current liabilities | 2,575,333 | 2,196,350 | |||||
| Long-term debt, net | 3,995,253 | 4,572,889 | |||||
| Other long-term liabilities | 1,014,676 | 950,983 | |||||
| Deferred tax liabilities | 300,946 | 296,519 | |||||
| Total liabilities | 7,886,208 | 8,016,741 | |||||
| Stockholders’ equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 7 | 7 | |||||
| Additional paid-in capital | 3,814,078 | 3,783,972 | |||||
| (656,047 | ) | (610,162 | ) | ||||
| Retained deficit | (178,645 | ) | (177,010 | ) | |||
| Accumulated other comprehensive loss | (190,979 | ) | (252,462 | ) | |||
| Total stockholders’ equity | 2,788,414 | 2,744,345 | |||||
| Total liabilities and stockholders’ equity | $ | 10,674,622 | $ | 10,761,086 | |||
CONSOLIDATED STATEMENTS OF OPERATIONS (currency and share amounts in thousands, except per share amounts) (unaudited) | |||||||||
| Three Months Ended | |||||||||
2026 | 2025 | % Change | |||||||
| Revenue | |||||||||
| Technology and consumer electronics | $ | 635,089 | $ | 657,692 | (3)% | ||||
| Retail, travel and e-commerce | 649,363 | 583,898 | 11 | % | |||||
| Communications and media | 394,016 | 371,000 | 6 | % | |||||
| Banking, financial services and insurance | 421,605 | 365,193 | 15 | % | |||||
| Healthcare | 178,830 | 189,805 | (6)% | ||||||
| Other | 221,488 | 204,634 | 8 | % | |||||
| Total revenue | $ | 2,500,391 | $ | 2,372,222 | 5 | % | |||
| Cost of revenue | 1,650,734 | 1,516,323 | 9 | % | |||||
| Gross profit | 849,657 | 855,899 | (1)% | ||||||
| Selling, general and administrative expenses | 731,098 | 687,032 | 6 | % | |||||
| Operating income | 118,559 | 168,867 | (30)% | ||||||
| Interest expense and finance charges, net | 75,317 | 72,994 | 3 | % | |||||
| Other expense (income), net | 14,511 | (4,919 | ) | (395)% | |||||
| Income before income taxes | 28,731 | 100,792 | (71)% | ||||||
| Provision for income taxes | 7,142 | 30,535 | (77)% | ||||||
| Net income | $ | 21,589 | $ | 70,257 | (69)% | ||||
| Earnings per common share: | |||||||||
| Basic | $ | 0.33 | $ | 1.04 | |||||
| Diluted | $ | 0.33 | $ | 1.04 | |||||
| Weighted-average common shares outstanding: | |||||||||
| Basic | 61,279 | 64,037 | |||||||
| Diluted | 61,300 | 64,065 | |||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (currency and share amounts in thousands, except per share amounts) (unaudited) | |||
| Three Months Ended | |||
| Revenue | $ | 2,500,391 | |
| Revenue growth, as reported under | 5.4 | % | |
| Foreign exchange impact | (3.5)% | ||
| Constant currency revenue growth | 1.9 | % | |
| Three Months Ended | |||||||
| Operating income | $ | 118,559 | $ | 168,867 | |||
| Acquisition-related, integration and restructuring expenses(1) | 34,869 | 18,024 | |||||
| Step-up depreciation | 2,755 | 2,376 | |||||
| Amortization of intangibles | 103,456 | 105,619 | |||||
| Loss on held for sale | 5,929 | — | |||||
| Share-based compensation | 29,455 | 26,600 | |||||
| Non-GAAP operating income | $ | 295,023 | $ | 321,486 | |||
| Three Months Ended | |||||||
| Net income | $ | 21,589 | $ | 70,257 | |||
| Interest expense and finance charges, net | 75,317 | 72,994 | |||||
| Provision for income taxes | 7,142 | 30,535 | |||||
| Other expense (income), net | 14,511 | (4,919 | ) | ||||
| Acquisition-related, integration and restructuring expenses(1) | 34,869 | 18,024 | |||||
| Step-up depreciation | 2,755 | 2,376 | |||||
| Amortization of intangibles | 103,456 | 105,619 | |||||
| Loss on held for sale | 5,929 | — | |||||
| Share-based compensation | 29,455 | 26,600 | |||||
| Depreciation (exclusive of step-up depreciation) | 53,158 | 52,721 | |||||
| Adjusted EBITDA | $ | 348,181 | $ | 374,207 | |||
| Three Months Ended | |||||
| Operating margin | 4.7 | % | 7.1 | % | |
| Non-GAAP operating margin | 11.8 | % | 13.6 | % | |
| Adjusted EBITDA margin | 13.9 | % | 15.8 | % | |
| Three Months Ended | |||||||
| Net income | $ | 21,589 | $ | 70,257 | |||
| Acquisition-related, integration and restructuring expenses(1) | 34,869 | 18,024 | |||||
| Step-up depreciation | 2,755 | 2,376 | |||||
| Debt costs(2) | 6,268 | — | |||||
| Imputed interest related to sellers’ note included in interest expense and finance charges, net | — | 4,186 | |||||
| Change in acquisition contingent consideration included in other expense (income), net | (416 | ) | (2,024 | ) | |||
| Foreign currency losses (gains), net(3) | 12,306 | (4,179 | ) | ||||
| Amortization of intangibles | 103,456 | 105,619 | |||||
| Loss on held for sale | 5,929 | — | |||||
| Share-based compensation | 29,455 | 26,600 | |||||
| Income taxes related to the above(4) | (48,057 | ) | (36,992 | ) | |||
| Income tax effect of change in tax law | — | 4,269 | |||||
| Non-GAAP net income | $ | 168,154 | $ | 188,136 | |||
| Three Months Ended | |||||||
| Net income | $ | 21,589 | $ | 70,257 | |||
| Less: net income allocated to participating securities(5) | (1,185 | ) | (3,416 | ) | |||
| Net income attributable to common stockholders | $ | 20,404 | $ | 66,841 | |||
| Three Months Ended | |||||||
| Non-GAAP net income | $ | 168,154 | $ | 188,136 | |||
| Less: Non-GAAP net income allocated to participating securities(6) | (8,372 | ) | (9,148 | ) | |||
| Non-GAAP income attributable to common stockholders | $ | 159,782 | $ | 178,988 | |||
| Three Months Ended | |||||||
| Diluted earnings per common share (“EPS”)(5) | $ | 0.33 | $ | 1.04 | |||
| Acquisition-related, integration and restructuring expenses | 0.57 | 0.28 | |||||
| Step-up depreciation | 0.04 | 0.04 | |||||
| Debt costs(2) | 0.10 | — | |||||
| Imputed interest related to sellers’ note included in interest expense and finance charges, net | — | 0.07 | |||||
| Change in acquisition contingent consideration included in other expense (income), net | (0.01 | ) | (0.03 | ) | |||
| Foreign currency losses (gains), net | 0.20 | (0.07 | ) | ||||
| Amortization of intangibles | 1.69 | 1.65 | |||||
| Loss on held for sale | 0.10 | — | |||||
| Share-based compensation | 0.48 | 0.42 | |||||
| Income taxes related to the above(4) | (0.78 | ) | (0.58 | ) | |||
| Income tax effect of change in tax law | — | 0.07 | |||||
| Adjustment for participating securities(6) | (0.11 | ) | (0.10 | ) | |||
| Non-GAAP Diluted EPS(6) | $ | 2.61 | $ | 2.79 | |||
| Weighted-average number of common shares - diluted | 61,300 | 64,065 | |||||
| Three Months Ended | |||||||
| Net cash provided by (used in) operating activities | $ | (83,220 | ) | $ | 1,408 | ||
| Purchases of property and equipment | (53,902 | ) | (50,618 | ) | |||
| Free cash flow | (137,122 | ) | (49,210 | ) | |||
| Change in outstanding factoring balances | (7,491 | ) | 9,394 | ||||
| Adjusted free cash flow | $ | (144,613 | ) | $ | (39,816 | ) | |
| Forecast | |||||||||||||||
| Three Months Ending | Fiscal Year Ending | ||||||||||||||
| Low | High | Low | High | ||||||||||||
| Revenue | $ | 2,460,000 | $ | 2,485,000 | $ | 10,035,000 | $ | 10,180,000 | |||||||
| Revenue growth, as reported under | 1.75 | % | 2.75 | % | 2.1 | % | 3.6 | % | |||||||
| Foreign exchange impact | (0.75)% | (0.75)% | (0.6)% | (0.6)% | |||||||||||
| Constant currency revenue growth | 1.0 | % | 2.0 | % | 1.5 | % | 3.0 | % | |||||||
| Forecast | |||||||||||
| Three Months Ending | Fiscal Year Ending | ||||||||||
| Low | High | Low | High | ||||||||
| Operating income | $ | 128,200 | $ | 138,200 | $ | 635,871 | $ | 685,871 | |||
| Amortization of intangibles | 103,000 | 103,000 | 394,000 | 394,000 | |||||||
| Share-based compensation | 26,000 | 26,000 | 110,000 | 110,000 | |||||||
| Acquisition-related, integration and restructuring expenses | 30,000 | 30,000 | 85,000 | 85,000 | |||||||
| Step-up depreciation | 2,800 | 2,800 | 9,200 | 9,200 | |||||||
| Loss on held for sale | — | — | 5,929 | 5,929 | |||||||
| Non-GAAP operating income | $ | 290,000 | $ | 300,000 | $ | 1,240,000 | $ | 1,290,000 | |||
(1) For the three months ended
(2) For the three months ended
(3) Foreign currency losses (gains), net are included in other expense (income), net and primarily consist of gains and losses recognized on the revaluation and settlement of foreign currency transactions and realized and unrealized gains and losses on derivative contracts that do not qualify for hedge accounting.
(4) The tax effect of taxable and deductible non-GAAP adjustments was calculated using the tax-deductible portion of the expenses and applying the entity-specific, statutory tax rates applicable to each item during the respective periods presented.
(5) Diluted EPS is calculated using the two-class method, which is an earnings allocation proportional to the respective ownership among holders of common stock and participating securities. Restricted stock awards and certain restricted stock units granted to employees are considered participating securities. For the purposes of calculating diluted EPS for the three months ended
(6) For the purposes of calculating non-GAAP net income attributable to common shareholders and non-GAAP diluted EPS, non-GAAP net income attributable to participating securities was approximately 5.0% and 4.9% of non-GAAP net income, respectively, for the three months ended
